analyst opinions on the 'deal'

'Surprising', 'Strange', 'Unexpected' are some of the opinions expressed by analysts.

If they are going into print with such public views what are they saying behind closed doors to their Institutional clients ?

http://www.iii.co.uk/articles/81288/vmr-buys-continental-coal-stake

Analyst view

Hunter Hillcoat, analyst at Investec, rated Continental Coal a 'buy', saying: "While a partnership with a precious metals producer is surprising, it provides Continental Coal with a more solid footing from which to advance development discussions for the [South African] De Wittekrans project."

Hillcoat added: "Village Main Reef now provides Continental Coal with an alternative option when it comes to developing its other projects, such as De Wittekrans, thereby forcing any other strategic partners in the project(s) to be more commercial, [in other words] realistic."

Analysts at FoxDavies also welcomed the "good news", pointing out "the share price was under pressure since the start of the year on expectation the company would have to raise additional working capital and meet its debt obligations".

Analysts at Numis were less positive, describing the move as "strange", while Mirabaud Securities acknowledged an investment by VMR was probably not the transaction most were expecting, as an investment from a coal off-taker would arguably have been the type of deal anticipated.

However, they said: "Nevertheless, the new investment, at a very significant premium (63%) to Continental Coal's price prior to suspension is a welcome means to strengthen [the company's] balance sheet while it continues to pursue a strategic investment."